China Stocks Rise in Thin Trade Ahead of Lunar New Year Holiday

China stocks rebounded on Wednesday, but volumes were thin as many traders had already left for the week-long Lunar New Year holiday that starts on Thursday.

Unnerved by a slump in their stock market in the past two weeks, many Chinese investors have played it safe by reducing their equity holdings ahead of the holiday. Others who are reluctant to scale back their positions say they have hedged their portfolios via index futures and options.

At the close, the Shanghai Composite index was up 14.52 points or 0.46 percent at 3,199.48. The blue-chip CSI300 index was up 0.8 percent, with its financial sector sub-index higher by 0.64 percent, the consumer staples sector up 1.05 percent, the real estate index up 0.75 percent and healthcare sub-index up 1.12 percent.